Arbor Insurance Blog

Is Rental Car Insurance Really a Rip-Off?

7/16/2010 11:18:16 AM

When renting a vehicle you will be asked if you would like to purchase coverage from the rental company to cover any potential damage to the vehicle.  Knowing what to do and where to spend your money can be frustrating when you have places to go and things to see.  Here is some helpful and basic information on rental car insurance: 

• If you have a personal auto insurance policy you may be covered in whole or in part for damage to a rental vehicle in the event of an accident or vandalism, etc. – but it WILL affect your record and premiums, and you WILL be required to pay the deductible.
• Personal auto insurance rarely covers loss of income from down time for repairs and also rarely covers depreciation of the vehicle – instead you are required to pay the rental company for revenue lost.
• If you use a credit card with terms that include rental insurance, the credit card company will provide a certain level of coverage depending on the make of the vehicle as well as the length of the rental and the extent of the damage – but getting through all of the formalities may be tricky or down-right impossible for the average person.
• Purchasing the optional Collision Damage Waiver (CDW) and the Loss Damage Waiver (LDW) from the rental company will provide peace of mind as well as maintain your standing with your personal auto insurance company – any damage to the vehicle is paid for by the rental company without charge to you or your insurance company, and it will not be put on your record.

 Still not sure if you understand rental car insurance?  Contact Arbor today!